Incorporating a holding company in Hong Kong, that sits between the main parent company and the target business, provides easy access to the Asian biggest market.
Besides, it also carries great tax advantages that you can enjoy through DTAs between Hong Kong and China as well as other Far East countries. For example, you only need to pay taxes on the company’s profits that stand at only 16.5% while no capital gains taxes will be levied.
The Hong Kong’s stable political and financial system will also give the company a launching pad that will catapult it to the global status. In this post, we provide a complete guide on holding company formation.
Get all the details and documents for holding company formation in Hong Kong
Notably, your holding company is considered a separate entity from the mother company back at home. Therefore, you are required to have the following documents.
- Photocopies of company directors’ passports.
- Note that the shareholders do not have to be Hong Kong residents.
- The copies and details of shareholders and their shares in the company.
- The memorandum of understanding.
- The articles of association.
- A letter from shareholders authorizing the formation of the company.
Once you have these documents, go to the next step of getting the company name.
Pick a company name and select the operational office
Hong Kong companies’ registry requires all companies to carry a name search to avoid conflict of interest. This is important in helping you to avoid taking a name that has already been chosen.
Before you can submit the documents to the companies’ registry, a Hong Kong office is also required. This is the official location of the company offices in Hong Kong where core operations should be based. After getting a certificate of incorporation, the business registration certificate is supposed to be well displayed in this office.
Get a resident company secretary
This is one very essential requirement when forming a company in Hong Kong. The companies’ ordinance indicates that the company secretary is the major link between the company and the administration. He is the entity that ensures the business is compliant with all the Hong Kong laws and related business policies.
Present the documents to the registrar of companies and wait for the incorporation certificate
Once you have all the documents, a business name, an office, and a secretary, it is time to present them to the company registry. It will take about 14 days to get the company cleared so that the operations can commence. Note that you will need the incorporation certificate to open a bank account in Hong Kong for the enterprise.
Use an agency to register the holding company
While the process of a holding company formation in Hong Kong is relatively easy compared to other states, many are those who still find it very tasking. For example, if you are abroad, the process of preparing the documents and flying all the way to Hong Kong can be lengthy and tiring.
A better and easier way of holding company formation in Hong Kong is using an agency. Agencies are registered entities that are allowed by law to register companies on behalf of clients. You only need to contact the right agency, provide your documents, and leave it to do the work. In fact, the agencies are even allowed to serve as company secretaries and main offices. This means you can register the company faster at a smaller cost compared to doing the entire work on your own.